The Malta Stock Exchange (MSE) Index added to last week’s losses as it ended the week 0.41 per cent lower, to close the month of May at 3.392.761 points. Activity was spread across 16 issues of which four gained ground, eight succumbed to selling pressure and four closed unchanged. Total turnover among equities amounted to just under €1.09 million. Middlesea Insurance plc (MSI) shares locked in the most significant gain for the week, while Malta International Airport plc (MIA) shares headed the list of slackers.
In the banking industry, Bank of Valletta plc shares fell by 0.5 per cent as 41 transactions of 76,231 shares were struck, to close at €2.14 – resulting in a monthly decline of 2.8 per cent. The equity recovered from a weekly low of €2.11. Meanwhile, HSBC Bank Malta plc shares increased by a minimal 0.1 per cent throughout the week as 28 deals of 39,720 shares were negotiated, to close at €2.11 – resulting in a 1.5 per cent decline in May.
Lombard Bank Malta plc reported that the Annual General Meeting (AGM) of the bank held on April 24, 2014 approved all six ordinary resolutions on the Agenda, including a bonus share issue of one share for every 20 shares held. In terms of the bonus issue, the bank capitalised €496,295 from its retained earnings account for the purpose of issuing 1,985,100 fully paid ordinary shares of a nominal value of €0.25 per share. Yesterday, the bank’s shares advanced by 0.8 per cent – after adjusting for the bonus issue. The shares were traded across one deal of 1,500 shares, to close at €1.45.
FIMBank plc shares shed 2.6 per cent as four trades of 18,500 shares were executed, closing at $0.75. The trade finance bank reported that it has submitted an application to the Listing Authority requesting the admissibility to listing of 77,009,494 new ordinary shares of a nominal value of $0.50 each, which will be available for subscription by those shareholders on the register at the Central Securities Depository of the MSE as at May 21, 2014, in accordance with the ratio of 16 new shares for every 41 existing shares at an offer price of $0.65 per share.
If subscribed to in full, the rights issue will raise a total amount of approximately $50 million. United Gulf Bank B.S.C. (UGB) and Burgan Bank S.A.K. have entered into separate subscription agreements with the bank whereby they have irrevocably undertaken to exercise their rights to subscribe to the new ordinary shares they are entitled to under the rights issue. Any lapsed rights from the rights issue will be offered to financial intermediaries during an intermediaries offer. Furthermore, Tunis International Bank S.A., (TIB) has undertaken in favour of the bank to subscribe to such number of new ordinary shares under the rights issue not subscribed to during the intermediaries offer. The obligation of TIB under the underwriting agreement is limited to a maximum value of $5 million. FIMBank and UGB have terminated the Convertible Loan Agreement, with the result that UGB may no longer convert any remaining amount into shares.
MSI shares appreciated by 2.1 per cent over three deals of 4,000 shares, to close at €0.939. Conversely, MIA shares sold off some of their recent gains as they fell by a significant 3.5 per cent as 11 deals of 24,700 shares were executed, closing €0.08 lower at €2.20.
MIDI plc and Tigne Mall plc shares registered a decline this week of 0.4 and one per cent respectively. The former witnessed the highest turnover for the week of €247,084 and closed at €0.24, while Tigne Mall plc was active across four deals of 384,000 shares, to close at €0.52.
In the IT sector, RS2 Software plc shares managed to advance by €0.03 across four trades of 22,394 shares – closing at a record high of €2.43. This equity continues to outperform other quoted equities as it appreciated by 7.2 per cent over the month of May. On the other hand, Crimsonwing plc shares closed unchanged at €0.86 over four deals of 57,000 shares.
The other non-movers for the week were, MaltaPost plc, Malita Investments plc and Simonds Farsons Cisk plc (SFC) as these equities closed at €1.12, €0.55 and €3 respectively. SFC announced that the company’s AGM is scheduled to be held on June 18, 2014.
The share price of GO plc fell marginally by 0.5 per cent yet closing at its weekly highly of €1.94 after trading at an intra-week low of €1.90. A total of seven deals of 7,952 shares were struck in this equity. Likewise, International Hotel Investments plc shares edged 0.3 per cent lower over eight trades of 33,848 shares, closing at €0.798. Meanwhile, Medserv plc shares declined by 2.3 per cent across two transactions of 3,000 shares, to close €0.03 lower at €1.27.
In the corporate bond market turnover amounted to €606,726. A total of 22 issues were active, of which five declined, six rose in value and 11 closed unchanged. The 5.6% GlobalCapital plc € 2014/16 was the best performer as it recouped by 1.2 per cent. The new bond issued by Island Hotels Group Holdings plc was over-subscribed and its allocation policy will be announced next week.
Finally, in the sovereign debt market 27 issues were active of which 11 lost ground, 15 gained in value and one closed unchanged. Total turnover amounted to €32.7 million. The most liquid issue for the week was the 4.45% MGS 2032 (II) r as it reached a traded value of over €8.2 million.
On Thursday, the Treasury of Malta announced that the price of the new 4.3% MGS 2033 (I) was set at €100.75 resulting in a yield to maturity of 4.242 % which corresponds to an annualised rate of 4.287 %. Applications by the general public can be submitted as of next Monday till next Wednesday, unless the Accountant General closes the issue earlier.
This article,compiled by Jesmond Mizzi Financial Advisers Ltd, does not intend to give investment advice and contents should not be construed as such. The company is licensed to conduct investment services by the MFSA and is a member of the Malta Stock Exchange and of the Atlas Group. The directors or related parties, including the company and its clients are likely to have an interest in securities mentioned in this article. For more information, contact Jesmond Mizzi Financial Advisers Ltd at 67, Level 3, South Street, Valletta, on tel: 2122 4410 or info@jesmondmizzi.com.